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China Prepares To Bailout Russia
Earlier this evening China's State Administration of Foreign Exchange's (SAFE) Wang Yungui noted "the impact of the Russian Ruble depreciation was unclear yet, and, as Bloomberg reported, "SAFE is closely watching Ruble's depreciation and encouraging companies to hedge Ruble risks." His comments also echoed the ongoing FX reform agenda aimed at increasing Yuan flexibility which The South China Morning Post then hinted in a story entitled "Russia may seek China help to deal with crisis," which which noted that Russia could fall back on its 150 billion yuan ($24 billion) currency swap agreement with China if the ruble continues to plunge, that was signed in October. Furthermore, two bankers close to the PBOC reportedly said the swap-line was meant to reduce the role of the US dollar if China and Russia need to help each other overcome a liquidity squeeze.
As Bloomberg reported, earlier in the evening, China's Wang Yungui noted
- *CHINA IS CLOSELY WATCHING RUBLE'S DEPRECIATION: SAFE'S WANG
- *CHINA ENCOURAGES COS. TO HEDGE RUBLE RISKS, SAFE'S WANG SAYS
- *REAL IMPACT OF RUBLE DEPRECIATION UNCLEAR YET, SAFE'S WANG SAYS
Adding that China plans sweeping reforms to promote FX flexibility.
And then The South China Morning Post hints,
Russia could fall back on its 150 billion yuan (HK$189.8 billion) currency swap agreement with China if the rouble continues to plunge.
If the swap deal is activated for this purpose, it would mark the first time China is called upon to use its currency to bail out another currency in crisis. The deal was signed by the two central banks in October, when Premier Li Keqiang visited Russia.
"Russia badly needs liquidity support and the swap line could be an ideal tool," said Bank of Communications chief economist Lian Ping.
The swap allows the central banks to directly buy yuan and rouble in the two currencies, rather than via the US dollar.
Two bankers close to the People's Bank of China said it was meant to reduce the role of the US dollar if China and Russia need to help each other overcome a liquidity squeeze.
China has currency swap deals with more than 20 monetary authorities around the world. Swaps are generally used to settle trade.
"The yuan-rouble swap deal was not just a financial matter," said Wang Feng, chairman of Shanghai-based private equity group Yinshu Capital. "It has political implications as it is a sign of mutual trust."
The rouble has lost more than 50 per cent against the US dollar this year, pushing Russia to the brink of a currency crisis, though measures announced by the central bank helped it recover some ground yesterday.
Li Lifan, a researcher at the Shanghai Academy of Social Sciences, said the swap would not be enough for Russia even if it is used in its entirety. "The PBOC might agree to extend something like 15 billion yuan initially as a way of showing China's commitment to Russia."
* * *
As we discussed in October when the swap deal was signed,
...as if to assure all involved parties that there will be enough capital support on both sides, the PBOC released a surprising announcement that the central banks of China and Russia signed a 3-year, 150 billion yuan bilateral local-currency swap deal today, according to a statement posted on PBOC website. Deal can be expanded if both parties agree, statement says. Deal aims to make bilateral trade and direct investment more convenient and promote economic development in 2 nations.
To be sure, some such as Bloomberg, are skeptical that the unprecedented pivot by Russia toward China as it shuns the west, will merely harm the Kremlin. Others, however, wonder: who will be left standing: Europe, with its chronic deficit of energy and reliance on Russia; or Russia, a country overflowing with natural resources, whose economy is currently underoing a dramatic and painful shift, as it scrambles to dissolve all linkages to the Petrodollar and face the Gas-O-Yuan?
* * *
Is 'isolated' Russia about to be bailed out by the world's largest economy China?
Perhaps, they already started...
But then again - with the BRICS currencies all turmoiling... (ZAR -22% not shown)
Perhaps it is not such a surprise as members take advantage of The BRICS Bank's $100 Billion reserve...
The punchline, however, is that using bilateral swaps, the BRICS are effectively disintermediating themselves from a Fed and other "developed world" central-bank dominated world and will provide their own funding.
We are pleased to announce the signing of the Treaty for the establishment of the BRICS Contingent Reserve Arrangement (CRA) with an initial size of US$ 100 billion. This arrangement will have a positive precautionary effect, help countries forestall short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements.... The Agreement is a framework for the provision of liquidity through currency swaps in response to actual or potential short-term balance of payments pressures.
Incidentally, the role of the dollar in such a world is, well, nil.
For those who have forgotten who the BRICS are, aside from a droll acronym by a former Goldman banker, here is a reminder of the countries that make up 3 billion in population.
Chart: Bloomberg
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Probably something from a Charlie Chan movie. That sort of shit creeps into cultural memory without any attributable source.
http://www.ask.com/wiki/May_you_live_in_interesting_times?o=2801&qsrc=999&ad=doubleDown&an=apn&ap=ask.com
Though it's probably already been said why don't both countries tie the Yuan and Ruble to the gold standard. Between them both they have alot of gold.
They aren't ready... If you believe Jim Willie it's because they are still trying to get Germany to join them. If that happens it truly is game over for the US and that may be why the US refuses to give Germany their Gold back.
You want it to be 'game over' for the US, don't you?
Are you willing to take concrete physical actions in order to harm the US, Bob? If so, please elaborate.
Again you ask this question...
No one can take him seriously as long as he keeps mistaking everyone for Bob Barker.
Hey Amerikan Patriot NOT, do you get paid extra if you set someone up for a bogus terrorist charge? It is creeps like you who are destroying our republic.
The hasbara troll sounds a bit desperate, and agressive...Bob indeed.
I don't know what kind of troll it is, but it is way too obvious. Desperate and aggressive and weird. WTF.
In the original [Bruce Willis/Brad Pitt/Mad Stowe] version of 12 Monkeys, the toothless hobo kept calling everyone 'Bob'
Americant Parrot, are you at all capable of providing a cohesive, cogent and compelling Argument for any of your views, or are you just slap happy to be able to heckle on a typical day and copy/paste on a good day? Just curious.
Serious question to Amerikan Patriot:
What exactly about "Amerikkka" are you patriotic about? the 400+ years of slavery? The Native American genocide? The fake beginings of WWII, the fake Pearl harbor attack, the fake Gulf of Tonkin attack, the fake 9-11 attack, the Snowden's revelation that the US gov spies on its citizens, the fake wars on terror, the 1% of Americans owning 50% of all wealth in USA, the lies of SHrub. Chenye, Obama about imaginary WMD, fake Al Queda, fake ISIS, what exactly, please tell us once and, for all?
I, for one, do, 'Bob'.
NSA Troll?
Amerikan Patriot- View
- Votes
Relationships- Relationship actions
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- Become Amerikan Patriot's Contact
HistoryHe sure ain't no Paul Revere,
(he probably have to look that up to see who I am talking about)
On other boards, there was a prolific poster called AP or American Patriot. He/she was anti gold and kept saying revert to mean of 456$US.
I accused him of starting with left hand ring finger and rolling to the right to come up with that analysis....
You keep popping up like pimples on Obutta's ass.
big time troll check his history
CAN WE PLEASE BAN HIM
Germany will never be allowed to do that. The FED boot is firmly on their neck and has been since 1945, just like Japan.
There are US military bases all over Germany. Germany is still an occupied country.
HTH.
Why not play the fiat game first and keep buying cheap gold in the meantime. When fiat crashes then move to PM's. Which govt can say no to a little free money?
If they aren't willing to make it redeemable, they would quickly be found out and then it wouldn't matter.
Actually they might not really need that. The currency swap mechanism in essence creates the YuaRub. When they finish having their own swift system, all major trade on the east part of the world, that is except western Europe and N. America, will eventually switch to that. Then the role of gold will come into place.
It will be used as the conversion medium between EurUsd and YuaRub. We are heading towards a bipolar world, players have already started taking sides.
Wow, the I-hate-America crowd is out in force tonight, isn't it?
Where do you folks draw the line as far as what you're willing to do to see the United States - the beloved homeland to many of you infidels here - defeated or replaced in world hegemony?
Are some of you folks planning actual physical attacks on the US, or is your hatred of America limited to mere words?
Obvious troll is obvious.
McMolotov...hmm...that sounds rather suggestive of physical violence.
Is that how you intended it, or are you really just a milquetoast and 'molotov' is simply an historical/literary reference?
It's my hobby. I am but a humble clown who occasionally engages in some light arson.
Why do you spell AmeriKan with a Nazi German 'k', hypocritical dudeface?
Are you Johnny Bravo? Have you graduated college yet?
https://www.youtube.com/watch?v=4pXfHLUlZf4
Buck Ofama
Kindly refrain from making an ass out of yourself by equating America with the US government.
Most everyone here is not as stupid as you are.
+1000
I think you need to be stupid in order to want to work as a troll.
There is America and their are the globalist that hijacked it a long time ago.
https://www.youtube.com/watch?v=vwWJQ9PRFIs
<---'thinking that the CIA/NSA WAY overpays the stupid'
Love America, hate its government. Two completely separate entities.
You've been here for over 4 months and haven't figured that out yet?
Can you point me to some posts to this article that support that contention, Bob?
All I read is vitriol and hate. Nothing about love for country. Maybe you can be the first poster to this article that expounds on your love for America.
Give it a shot!
Who the fuck is Bob, you arrogant ass? Stop being such a piss ant and people might actually have a conversation with you. But that isn't why you are here is it?
I might be me, but "love for country" just sounds so fascist. Freedom is what I love, not some violence provoking love of country BS.
"Love for Country" springs from understanding our Storied History, and most importantly that "America" is NOT based on or about Individuals, rather an "Ideology of Liberty" that Transcends Humanity.....
If the USA said today we will allow ANYONE in any Country to come to the USA, literally Billions would come......
That is not Propaganda but REAL SUBSTANCE........ Illustrating and PROVING the Point......
Is there even ONE case of someone dying to GET INTO CHINA or RUSSIA ?
We have had Booms and Busts long before......and we will have them long after......
The "System" of the World is the Transfer of Wealth from the Hands of the Many to the Hands of the Few......
That has Never Changed and Never Will.......Because that is based on Human Nature.......
Greed and Arrogance are most Human Qualities........
EROEI is the Real Threat........
I'll take my Chances with the USA.......Come What May.....
LOL...CIA Plant? "aahhh are you boys planning any attacks" lolz...
https://www.youtube.com/watch?v=6fZZqDJXOVg
Can't be a CYA employee. Their IQ requirements are much higher than 90.
Nah, more like a subcontractor for a subcontractor. That's what happens with multi-level outsourcing, and "patriotic" piggies at the Gov trough eating up Margin. ;-)
Welcome to the Putin man boy love association. ZH is packed with shills, paid with wooden rubles.
If you are going to do this stuff, be funny. Make us laugh and maybe you will get some respect regardless of your point of view. Insults without wit ain't gonna get it. I really don't know why you bother unless this is just pure trolling for the sake of the LULZ. Still, make it funny, I'll give you greenies.
Dear 'Exceptional-istan' allegory-of-the-cave dweller... open your eyes, do you really like the way things are shaping up globally due to US hegemony? And BTW, America is more than capable of physically attacking itself. How awesome huh?!
The Chinese can always sell some USTs to free up space.
Never thought just how historically powerful that picture of the BRICS turns out to be
This sounds like a Bear Hug to me. What does China have to lose?
China will lose nothing.
Russia will lose it all.
I agree. There were many many times China could have taken steps against the west and they didn't. They and the US are number one trading partners and they never do anything to mess that relationship up (since 1971). It's akin to the US / Saudi deal of "you price oil in dollars and no one will jack with your kingdom". China even is part owner of the FED via proxy of their banks (much like Deutsche Bank is part of the FED system and BOE). http://usatoday30.usatoday.com/money/industries/banking/story/2012-05-09...
I really wonder if this is stealth statecraft to bring Russia under Chinese control. When China went ahead anyway and bought Iranian oil, they did so at huge discounts ($50 a barrel when it was $100). They are pretty wilely about getting the upperhand.
I'll have to study up on this development.
[There were many many times China could have taken steps against the west and they didn't.]...
As corporate financial statements say, past performance is no guarantee of future performance.
US buying public is no longer in any economic position to buy all the junk product that China was able to put out for next to nothing in the past just to get international trading currency....
China has entirely new ranking in the world hegemony and no longer needs to kiss US ass.
China has patiently built up these yuan-swap agreements in many countries.
They may have to only speed things up.
Sun-Tzu guy would say do fight fight enemy currency, go around enemy currency.
They are joined at the hip and you are in denial.
China's Total Debt Surges To 251% Of GDP
China's total debt (financial credit) burden hit 251% of GDP at the end of June, according to Stephen Green at Standard Chartered.
By comparison, the US had a 260% total-debt-to-GDP ratio in 2013 and Japan has 415%, according to the FT.
On the face of it this doesn't look as bad. And the argument typically goes that because a lot of this is domestic, not external debt, China has no reason to worry.
But the concern with China has centered on the rapid rise in debt (financial credit) to GDP from 2009 on.
This financial credit or debt number cited by Green looks at "total social financing (TSF) numbers published by the People's Bank of China, offshore cross-border bank borrowing and bond issuance, as well as official Ministry of Finance (MoF) debt."
And if you recall China's back on a credit binge. TSF surged to 1.98 trillion yuan in June, from 1.40 trillion yuan in May, and beat expectations for 1.42 trillion yuan. That prompted Bloomberg economist Tom Orlik to tweet that growth has become Beijing's top priority again.
Last year economists said the main bear argument on China was that it took more and more credit growth to deliver less and less economic growth.
Green points to a chart showing the divergence in total credit and nominal GDP. "Clearly, though, until the green and blue lines converge, the economy will continue to leverage up, and the market will remain concerned."
What's your point here? That debt is their taking advantage of America whoring out its T's to fund its endless wars and fat lazy-ass welfare takers - taking advantage to bolster themselves into the world's largest and most capable economy. Are you suggesting China is in for a crash? Newsflash: everyone is! It's not about avoiding it, but who's coming out faster and more dominant. Unfortunately for you it's not your homeland, troll
VATICANT
login give you a vote-up, Exactly, de mother of all crash is coming, and China is ready for it to happen,Crash all of em currencies if you want, than all will start Zero + Gold and Silver
It is not just the "quantity" of debt which is important, but also the "quality" of the debt. Politically-directed lending (apart from the shadow banking system) is still the norm at the large state-dominated banks in China. The WSJ had a great article some time back describing how the CEOs at the large banks were being given substantial salary increases for making "politically correct" loans, the majority of which resulted in NPLs, while the only CEO to make "economically-justified" loans, which generated large profits for the bank, was passed over for a raise.
As far as Russia and China backing the rouble and yuan with gold, the value in having a gold-backed currency, apart from the crucial aspect of limiting the supply of paper in existence, is that the holder of such currency would presumably have faith (i.e., trust) in their ability to exchange a unit of the paper currency for the corresponding unit of gold upon demand. Does anyone really trust that China and Russia would really honor such a demand? Russia, maybe (even probably). China, I very much doubt. The PRC has proven itself quite adept at welching on the nation's external debts, which evidences a disregard for honoring contracts or other forms of implicit or explicit commitments.
I don't believe that china or russia would allow any redemtion of the gold. If they did, Dollar Inc would quickly take advantage of the system to their favor.
The whole world is in a bubble, AP, and what you don't seem to grasp is that the US in the worst bubble of all.
260%? That's a joke.
Americans always referred to the "NWO" as some illuminati conspiracy meant to hurt them.
Well now it appears there's a NEW NWO (NNWO) and this one WILL hurt Americans as the USA's number 1 export is....dollars.
I guess...be careful what you wish for...
Another lesser-of-two-evils choice; an NWO controlled by Western banks and progressives/neocons or an NNWO that Westerners don't control.
I'm thinking a little competition would be good for the Western psyche and I'm not liking a lot of what I see from our "dear leaders" right now.
I'm not sure what country you live in but if it's the USA this is not good. The #1 export for the us is...dollars. The reason being - it's the world's reserve currency.
The chief benefit of this privilege is that the US can live above their means by exporting our inflation to other countries which are then forced to have a lower standard of living. But with great privilege comes great responsibility, a responsibility that has been used recklessly, irresponsibility, and without thought of consequence of what would happen to America in it's current state if we lived without it.
With that being said without the privilege of having the world's currency and while being the largest debtor nation the demand for dollars held overseas decreases and the dollars (that we exported) get sent back here to the U.S....and guess what that means? A hyper-esque inflationary episode.
Which makes one wonder about the change in FED language to (we can rate hikes ANY time WITHOUT notice). Also the compromise on the Cromnibus (whipped by a banker), and the trade embargo being lifted on Cuba.
Really feels like there's a monster under the bed. And this one is real.
Bill Gross said something about TIPS being a good idea lately. At first I thought he was a bit crazy but once I started thinking about how all of this COULD play out, who knows, it might not be a bad idea to hold some TIPS. No one wants any TIPS right now so the natural contrarian in me says to buy some though I have no idea what I'm going to do.
At the case it's disconcerting.
Your two comments seems at odds with each other. I agree with a lot of what you say in the second comment so either I misunderstood your first one or...
At any rate, I would not be a big fan of any kind of world order. I'm all for sovereignty on the personal and national levels. Cultures matter and no one has given any higher authority the ability to destroy a nation's cultural identity and sovereignty for the benefit of themselves. Those who push for it are traitors to all nations and a cancer on civil society.
In my opinion, neither Russia nor China is a threat to me or to the true national interests of the American people. It is not in my interest for the American government to have a foreign policy of economic, diplomatic, and military hegemony. And, to be perfectly clear, the USD reserve currency status is part of the hegemony. There are 6.7 billion non-Americans living with currencies that are not reserve currencies and they seem to getting along fine without it..
I don't know the exact number of dollars held overseas (roughly $8 trillion) and half of the world's population are in the BRIC countries.
If those countries say "we don't need those dollars, here America you can have them back" than all those dollars come back to America and at 8 or 9 trillion dollars suddenly finding their way back home to the USA that's inflationary and there's no two ways about it.
What this zerohedge article states is that the dollar is being completely bypassed for foreign exhchange agreements and trade. If this turns from a small snowball to a large snowball it would happen quickly and it could be the dollar that collapses.
Unfortunatly I wasn't invited to those meetings so I have no idea what plots are being hatched. However I am aware of the potential risks whether or not they materialize is anyone's guess.
I understand what you are saying and why it should concern all Americans. The question is, are you willing to go to war and kill millions of people in order to preserve the dollar status? Are you willing to destroy the economies and currencies of other nations (and millions of people who, like you, were not invited to those meetings) so that you do not suffer hardship?
Japan had to deal with a similar event in the late 80s, early 90s (in large part due to the demands of the US government trying to protect the dollar). Should the US do that to China and Russia? Do you think they will accept it as well as the Japanese who, unfortunately for them, are influenced to the point of control by the US?
Where do you draw the line?
ETA: I am not downvoting you.
"I understand what you are saying and why it should concern all Americans. The question is, are you willing to go to war and kill millions of people in order to preserve the dollar status?"
Aside from religion is there any better reason to go to war other than money and resources?
Like I said, I don't like war, but if there is a war I want to be the one making money from it. Not being crushed by the consequences. Sure it sounds shallow because money doesn't buy happyness but it sure does pay for the journey to find it.
All I can say is that you are inviting some seriously bad karma on yourself.
To be sure you would not kill a man on the street for his wallet. However, you seem to have no problem if a government kills for your benefit.
Perhaps that is the real and only true benefit of government, to be a surrogate for man's darker nature.
No system is safe. No currency is safe but should hundreds of millions of people be at the mercy of this? There is not a thing wrong with America leading the world. It was once a nation worth fighting for. It has been captured by predatory businessmen and covert war is underway to ensure no one interfers with their plans (the game Monopoly). Do Not Pass Go means to not start over again by taking 1 step too many. Only option for freedom loving people is destroy this entity and that could be done by joining Russia and the BRICS.
I wonder what a US $10,000,000 note will look like...
NWO + SDR = DROWNS
Wouldn't it be interesting if the "support for collapsing RUB" was actually cover to dump more USD to buy more RUB, but then how much USD would be required?
+1
Bang on!
Diversification and power brokering.
Things the US used to do, but now considers beneath itself.
Time, time, time, see what's become of me
While I looked around
For my possibilities
I was so hard to please
But look around, leaves are brown
And the sky is a hazy shade of winter
Hear the salvation army band
Down by the riverside, it's bound to be a better ride
Than what you've got planned
Carry your cup in your hand
And look around, leaves are brown now
And the sky is a hazy shade of winter
Hang on to your hopes, my friend
That's an easy thing to say, but if your hopes should pass away
Simply pretend
That you can build them again
Look around, the grass is high
The fields are ripe, it's the springtime of my life
Ahhh, seasons change with the scenery
Weaving time in a tapestry
Won't you stop and remember me
But look around, leaves are brown now
And the sky is a hazy shade of winter
Look around, leaves are brown
There's a patch of snow on the ground...
Nice
Rome taught the world that any good political theatre needs the big fall guy.....gee folks what people/nation makes the list millenia after millenia...coming in due time...the ancient chessmasters have the two big religions/political forces going gangbusters at each others necks...... as the world watches ......a
global awakening and understanding begins to dawn....
Shorting gold? Nyet!
Hey Russia, thanks for North Korea. Does everything you touch turn to shit, you wooden ruble mutherfuckers.
Maybe I have it wrong. But this is not a bail out, it is not a loan or debt forgiveness. It is a currency swap. The total possible amount is $24 B, which is 1 month of the Fed's QE. Shows/compares the amount of financial clout the two countries have to work with, which is why Russia is at such a disadvantage at this time. Sure is good to be the global reserve and hints at the damage that will occur if that ends.
"It is a currency swap"
It's a shot across the bow is what.
Nooo....It is however a good test of a system they designed specifically for these purposes...
How to deal with a financial crisis without involving the west where possible.
ooo financial independance now as well.... oooops...
And I belive they share a border, no?
axis and allies.... and ex-allies
“It happened that a fire broke out backstage in a theater. The clown came out to inform the public. They thought it was a jest and applauded. He repeated his warning. They shouted even louder. So I think the world will come to an end amid the general applause from all the wits who believe that it is a joke.”
? Søren Kierkegaard
This is America's 'Gordian knot' that has snared a pyrrhic victory out of the jaws of Faustian's grave...
sad[?]
Hooray for uncle Benny!!! The east are whackos the west are Psychos who will Duke Nukem first???
Maybe Obama just comes on the telly one day and says: "Russia is our greatest threat and it is time we take swift and decisive action first strike options are now on the table!" That's when all hell breaks loose...
Q: How do you say 'Taiwan' in Cuban?
A: MINE MOTHERFUCKER
Formosa
Pretty funny that, in divorcing themselves from the USD, they announce the size of the agreement in denomination of USD.
So Putin can swap 60 rubles for 1 USD or 10 rubles for one CNY. The advantage of the alternative is???
In the official documentation of the "BRICS Bank", the only currency mentioned is US$, not Yuan, not Rubles. Basic information on the "BRICS Bank":
http://goo.gl/rMqBNC
Being the nation with world reserve currency is overrated.
If the dollar is strong, it makes our products less attractive for other countries to buy. Too expensive.
We could devalue the dollar by printing more, but every other shithole country is doing the same, because the bankers are in cahoots.
We're all headed for hyperinflation. Get ready for the ten dollar happy meal.
What products? Depleted uranium - we give it away (at high velocity)? GMO food substitutes? FRNs?
Seems like the only products we offer are toxic.
If the Chinese jump in the water to save the Russians and the water turns out to be too deep for them as well and they get in trouble, then all hell breaks loose and Obama may have really started WW3 and even Jane Psaki's tweets won't save us!
ZH is so full of propaganda these days....Russia has plenty of cash coming in from its partners from East and West
U.S. Orbital Sciences Orders Russian RD-181 Engines for Antares Rocket
Russian Capital To Flow Into Egypt Including Nuclear Plant Construction
Russia and Kingdom of Bahrain Hold First Ever Investment and Trade Meeting
Russia To Help Build 12 Reactors in India
U.S. Abbott Labs To Buy Russian Generics Maker VeroPharm
Ukraine To Import Electricity From Russia
Russia Signs Deal With Hungary For Nuclear Plant Expansion
European Space Agency (ESA) Proposes Joint Moon Trips With Russia
Sweden’s Nordea Bank Sees Profit of €40 Million From Russian Investments…..Russian Lending Rose 8.2%
Nissan Expands Car Production in Russia Amid Market Recovery
Ford Launches EcoSport In Russia For Production In Naberezhniye Chelny
But all of these business decisions were made BEFORE the Ruble went unstable. Let's see if the trail of cash continues in the next 60 days.
Russia can build all of the nuclear generators for India that the Russians can finance.
Funny how people still think the world is running by chance.....it's all engineered there's nothing left to chance AT ALL
1945 British National Archives Document Calls For New World Order Now
You need to read this if you think it's business as usuall.
http://www.ronpaulinstitute.org/archives/featured-articles/2014/december...
Today the US House passed what I consider to be one of the worst pieces of legislation ever. H. Res. 758 was billed as a resolution “strongly condemning the actions of the Russian Federation, under President Vladimir Putin, which has carried out a policy of aggression against neighboring countries aimed at political and economic domination.”
In fact, the bill was 16 pages of war propaganda that should have made even neocons blush, if they were capable of such a thing.
These are the kinds of resolutions I have always watched closely in Congress, as what are billed as “harmless” statements of opinion often lead to sanctions and war. I remember in 1998 arguing strongly against the Iraq Liberation Act because, as I said at the time, I knew it would lead to war. I did not oppose the Act because I was an admirer of Saddam Hussein – just as now I am not an admirer of Putin or any foreign political leader – but rather because I knew then that another war against Iraq would not solve the problems and would probably make things worse. We all know what happened next.
That is why I can hardly believe they are getting away with it again, and this time with even higher stakes: provoking a war with Russia that could result in total destruction!
http://www.truthdig.com/report/item/three_congressmen_just_reignited_the...
The Russia Sanctions bill that passed “unanimously,” with no scheduled debate, at 10:23:55 p.m. on Dec. 11, 2014, includes:
1. Sanctions of Russia’s energy industry, including Rosoboronexport and Gazprom.
2. Sanctions of Russia’s defense industry, with respect to arms sales to Syria.
3. Broad sanctions on Russians’ banking and investments.
4. Provisions for privatization of Ukrainian infrastructure, electricity, oil, gas and renewables, with the help of the World Bank and USAID.
5. Fifty million dollars to assist in a corporate takeover of Ukraine’s oil and gas sectors.
6. Three hundred and fifty million dollars for military assistance to Ukraine, including anti-tank, anti-armor, optical, and guidance and control equipment, as well as drones.
7. Thirty million dollars for an intensive radio, television and Internet propaganda campaign throughout the countries of the former Soviet Union.
8. Twenty million dollars for “democratic organizing” in Ukraine.
9. Sixty million dollars, spent through groups like the National Endowment for Democracy, “to improve democratic governance, and transparency, accountability [and] rule of law” in Russia. What brilliant hyperbole to pass such a provision the same week the Senate’s CIA torture report was released.
10. An unverified declaration that Russia has violated the Intermediate-Range Nuclear Forces Treaty, is a nuclear “threat to the United States” and should be held “accountable.”
11. A path for the U.S. withdrawal from the INF Treaty, which went into force in 1988. The implications of this are immense. An entire series of arms agreements are at risk of unraveling. It may not be long before NATO pushes its newest client state, Ukraine, to abrogate the Non-Proliferation Treaty, which Ukraine signed when it gave up its nuclear weapons, and establish a renewed nuclear missile capability, 300 miles from Moscow.
12. A demand that Russia verifiably dismantle “any ground launched cruise missiles or ballistic missiles with a range of between 500 and 5,500 kilometers ...”—i.e., 300 and 3,300 miles.
If anyone thinks I am exaggerating about how bad this resolution really is, let me just offer a few examples from the legislation itself:
If China decides to heavily cash out a few$$$ jillion more
US Treasuries, it wouldn't be a bad idea to "get out when the gettin is good" while the US can still fool the world into propping up its house of cards Ponzi economy.
China cannot really "cash out" without killing the value of their UST holdings. They can stop buying though.
Stopped buying, started selling... ~$14b since September.
Yes, China down $14 Billion since August 2014, but was higher total on Mainland. Hong Kong increase over the year as well off-setting selling by China.
China, Mainland $1252. Billion, Hong Kong $161 Billion, Oct 2014, Long Term Treasuries, so yeah $1413.7 Billion Total for China. That is the best number I got.
Russia $108.9 Billion, Oct 2014.
http://www.treasury.gov/ticdata/Publish/shl2002r.pdf
http://www.treasury.gov/ticdata/Publish/shla2013r.pdf
(http://www.treasury.gov/ticdata/Publish/mfh.txt)
http://www.bea.gov/newsreleases/international/intinv/iip_glance.htm
Below Last Data is from April 2014.
Belgium 2002 = $10.8 B, then 2013 = $163 B, Today $366 B
Cayman Islands 2002 = $10.7 B, then 2013 = $66 B, Today ??
Canada 2002 = $8.4 B, then 2013 = $46.6 B, Today $60.5 B
China 2002 = $95 B, then 2013 = $1,272 B, Today $1263 B
Hong Kong 2002 = $37 B, then 2013 = $89 B, Today $155 B
Ireland 2002 = $6 B, then 2013 = $91 B, Today $112 B
Japan 2002 = $260 B, then 2013 = $1,023 B, Today $1210 B
Luxemburg 2002 = $20.2 B, then 2013 = $107 B, Today $141 B
Philippines 2002 = $3 B, then 2013 = $36 B, Today $34 B
Poland 2002 = $7 B, then 2013 = $31 B, Today $30 B
Russia 2002 = $3 B, then 2013 = $138 B, Today $116 B
Switzerland 2002 = $28 B, then 2013 = $157 B, Today $178 B
Taiwan 2002 = $0 B, then 2013 = $183 B, Today $175 B
United Kingdom = $45.7 B, then 2013 = $130.6 B, Today $186 B
Yeah they can.
They could engineer a crash and dump treasuries into the welcoming arms of the US markets. The Fed will step in to support the markets with more QE. It'd be almost a direct transfer to the Fed's balance sheet at bond market highs.
The point talisman is making is that this would not crash the $ because it still retains enough credibility (for whatever reason) to keep the Ponzi going a bit longer. Hence now is a good time to cash out.
Geobbels
China makes non USD trade deal in worthless Roubles now tries to save face.
There fixed
There is even more to this story:
COLD WAR 2.0: THE OLD MAID CARD OPTIONhttp://winteractionables.com/?p=17261
That is the thing about Creating money that stays out of the country it drips and dribbles back in and if you have $5 Trillion Printed already... well who is to know about $100 billion or so.
The PBOC takes Gold Bullion as collateral.
Gazprom In Top Five Global Companies With Largest Cash Pile – Moody’s
Oh Boy. The DE-DOLLARIZATION is accelerating faster than I thought. It's a pity that most of ZH crowd cannot comprehend importance of these events. I will try to simplify it.
We have to understand that, it's not about supporting ruble v.s. dollar. It is irrelevant for government but pain in ass for regular Russians. Russia and China doesn't care about it at all. They have all the money to do it. What this is about, is to purge dollar from world trade and recover internal assets on cheap but not through selling China three trillion $ reserves and collapsing dollar right away but to artificially raise dollar trade value (induced scarcity) temporarily against most currencies until the dollar/euro/yen dump for world commodities is completed. Also as Putin, calling to repatriate Russian money from abroad with no taxes or questions, meant was that soon dollar will be worthless in the east, so use this opportunity to buy ruble or yuan with profit and bring it home.
To do that China can use Russia and other nations swap agreements to remove dollar (double) trade and demand to trade in yuan and other counter currencies. And what’s most important removing dollar as a intermediary of exchange rate setup, perhaps, fixing the rates. For example: 5 ruble = 1 yuan fixed. You get it, asian Bretton-Woods man. And then let dollar and euro float into oblivion since nobody, except US vassals would need it for nothing. To buy stuff yuan, ruble etc. will be needed. West: US, Europe, Australia, Japan was emptied out of production of any real stuff, long time ago, they were reduced to LEGO builders that’s all. West has one thing to offer, paper. Most western brand and labels are already own by Chinese and produced in China. All western technology stolen. Nothing left.
China is looking ahead 100 years, Russia 50 years, and US 10 minutes which is attention span of American watching Kim Kardashian butt. More then that would be a suicide.
Who should we trust? Take your wild guess.
It fits a US narrative of wealthy elites moving in on the American Idea which might have been invented by the Masons.
- USA Resources & Labor had to be developed like the East India Trading Company and the Hudson Bay Trading Company
- USA People had to be encouraged to move Westward to discover resources and help displace Native Indigenous peoples
Today:
- US Labor Rate has been high since 1970s Worker Rights Laws and Worker Safety Laws
- US Land has been largely allocated and is being reallocated at some expense
- US Resources are fairly well known and are being exploited at a moderate or quick rate
- Process of Decapitization or Post Modern Industrial phase has been well under way with Outsourcing, Off Shoring, and Tax Shelters out of country
- Corporate Tax rates are moderate at 12.7%
Problems:
- Federal Government Debt Overhang means Risk to Infrastructure, Energy Rates, Utilities Rates, and Future Corporate Tax Rate
- Population has much claim on real property, but is not high enough to sustain the Federal Debt
Advantages:
- Lawyers, Bankers, Politicians have complete control over courts, laws, and government regulators for the most part
- Corruption is at a comfortable level for all concerned
- Anti-Trust Laws are largely forgotten especially in Banking & Finance
Best Course of Action: Continue to leverage credit while using all cost cutting methods to shed employees in the USA, maximize Robotics & Automation, while using cheap foreign labor and Black Market Labor or Slave Labor off shore
Scatha, theoretically, yes
In practice, the chosenites will not allow the dollar to float into oblivion, as it would mean an end to their capacity to impose their international banditry by force of arms.
The nuclear option may be off the table or it may not, we dont know.
Conventional war on ru/chi duo? I think we can rule it out, even the chosenites arent that stupid.
Do you think the psychopathic oligarchs of washington-tel aviv axis will meekly declare their dream of global domination void , say sorry and go home?
So, where does it leave us?
That's why American oligarch class wants global war, more then ever, before secret is out that they already became senile. Russia and China, in contrast, wish for peaceful surrender of US/West interest, against simple fact that it never happened before in history of civilization. Never, dying emporium relinquished its dominance in world trade without war if there was any serious contender to power. I am afraid US won't be the first.
The world leader in shitting on the side of the road is going to "bail out" mother Russia.
Now I've heard it all.
So, do they face traffic or away from traffic..? I'm just curious.
I am calling this sunday as a potential for a major event.
Remember the elites love of 7?
21/12/14
21=3 sevens
14=2 sevens
3+2=5
5+7=12
21 12 14
Whadya think?
"Remember the elites love of 7?"
No, they love to steal and kill. Any day will do.
"Cookies" Nuland prefers war around the 18th. of each month. If you know what I mean.
An American, not US subject.
That's not exactly how numerology works... ultimately, everything is reduced down to the numbers 1-9.
Thus 21-12-2014 would be 3+3+7=13, futher 1+3=4... in a nutshell.
Fore!
I think you think too much.
"It appears that the SCO formation in 2001 was another tactical win by the Sino-Russian block, against the - occupied with the war on terrorism - West, to be used against future plans by the global neoliberal dictatorship, which would probably include the dissolution of the vast Russian territory and the dangerous isolation of China by land and sea."
http://failedevolution.blogspot.gr/2014/09/cold-war-20-chinas-moves-to-a...
Meh. Ruble crisis over.
17% is crucifying the bankers who were shorting the currency, their balls are being squeezed till they squeek. Give it a month, maybe a quarter to make sure and they'll reduce the interest rate because the Ruble is appreciating too quickly.
Putin is "Da man" who gets what needs to be done, done...
the big move was the oligarchs cashing out. the crisis is in its infancy.
It's over & done with.
Here's the fundamental difference between the US and Russia. The US is run by financiers and bankers. Russia is run by killers.
Putin will personally get in your face, take you down and choke you till you stop breathing, he practices that stuff every other day. OBama will try to drone you from 3000 miles away.
Bankers and financiers are fundamentally cowards. They want their power, influence by proxy and their rewards but are terrified of pain. They spend their professional lives avoiding risks. That's America today. Freedom without responsibilty, reward without risk. It's a mistake to project that mindset on to Russians.
he's a politician. he just admitted the crisis will last 2 years (putin won't last 2 years). read the text.
No, the (Ruble) crisis[1] is now over. Oil prices may be depressed for up to 2 years[2], and here's the key point in that part of the transcript. He's going to leave the market to solve it's own problems. It's pretty clear that Russia is now more capitalist than America.
[1] The word crisis comes from the greek for turning point. Well, the Ruble turned on the 16th.
[2] Seems unlikely to me. US producers will start to collapse well before that point & reduce production. 2 quarters at most.
Or, Bath House is a pussy, Vlad is OG
http://lit.md/files/nstarikov/rouble_nationalization-the_way_to_russia's_freedom.pdf
In the east, we call 'Comrades'. In the west, we call 'Zionist'.
Despite its military strength, the Bush II dynasty did not last long. When the G.W. Bush was replaced by the Oligarchs of Western Europe in 2008. His successor to the Throne B. Obama divided the Empire into many political factions and a stronger faction appeared in Western Europe.
Attempt by the remaining Bush II dynasty under B. Obama to influence and control the Empire promoted war, corruption, disinformation, secrecy, and disunity as well as Regional Wars. The advisers squabbled among themselves, however, which resulted in both their deaths and that of other potential successors to the Empire both in Western Europe and the former Region called the United States. Popular revolt broke out a few years later, and the weakened empire soon fell to a Neocon lieutenant, who went on to found the Walker dynasty.[note 1]
/S
Don't forget Jeb.
Bankers' Day
A day celebrated in the neo-American Republics to celebrate the times when banksters hung like many blood-red ornaments on a Christmas Tree.
Keep smoking that China has anyone back. They are sitting pretty with $/RMB up. They want to upset this ?
a few throwaway lines from SAFE = fully fledged bailout. get with the program
What unfolding right in front of our eyes is rapid forming of two camps ready for soon-to-come great WW3, in which the US will repeat the fate of Nazi Germany. For those who don't want to shrug it off, time to see goodbye has finally arrived.
American Patriot bitchezs!
I think he has become an object of amusement aka MillionDollarbonus (who was acting the role only)
LoL
The US just signed its USD death certificate!
Kyle Bass, stunned, in cafe..
"What is up, Kyle?
"They...saiod they were gonna kill the dollar...our own guys..."
Indeed....
Kyle Bass is another Wall Street Hack who tries to project that he is "In the Know"......
That particular Dollar episode, in and of itself, Proves this:
Anyone who truly understood Markets would know that not even POTUS can "Kill the Dollar", even if he wanted to........
No Individual or Group of Individuals have the Power to "Kill the Dollar".......
Believing this, Peddling this, and even Worse Acting on it, only shows that like Whip Cream when you begin to dig down, you see there isn't much Substance....
When is it best for the Zionists to tangle with a nuclear armed opponent, and there is little risk to them? When you can tangle with two nuclear armed opponents and still run little risk of bearing the brunt of any retaliation.
"DC US war-dog, you're up at bat again."
An American, not US subject.
Red, white and blue? The the red stands for the blood that we Americans shed for the white and blue.
Anyone watching Putin in the live broadcast? Interesting indeed.
Here is a interesting thing to ponder:
If the DC US nuked China today, in about a month or two there would be nothing for purchase at nearly all the stores in the DC US. Nothing in Harbor Freight, Walmart, Target, Toys R Us, Kohl's, The Pleasure Chest, PetSmart, Pepboys, Best Buy, Bed, Bath and Beyond, Costco, Sams, Ace Hardware, RadioShack,...
I wonder what John Nash would have to say about that?
An American, not US subject.
neo-Alexander Nevsky having bended knee to neo-Kublai Khan in Xanadu, the neo-Mongol Empire makes it presence felt to the neo-Teutonic order of Mutti-EU, surrogate to neo-Pope of WS and neo-Holy Emperor of DC.
We are back in the obscurantist Middle Ages with a vengeance; where Corporate neo-feudals roam the world looking for spice (ukrainian/thai pussies), gold (black type), silk (Ali Baba cheap labour) and gems (rare earths-uranium) of the Orient (BRIC +Africa).
To put it more in terms of the Americanese of our age : "All along it was Barzini" says neo-con Don C sitting in DC !
Barzini in Xanadu has the smile of the proverbial cheshire cat ! Who can bell that cat ???
Play on Oligarchs.
Brings back memories of my first viewing of brilliant Eisenstein film, Alexander Nevsky.
What the f*ck are you on about?
The Man said : Our Money, your problem. It started the Pax Americana petrodollar roll.
I say : Our History, your problem. It may start (these current events) -- if I get the article right-- the petrodollar unroll.
Read Plutarch's Lives (parallel trails of tales in history) and you may find the light.
I ask again, why don't the Russkies offload their US T-Bills?
Belgium loves T(eldar)-Bill Paper
Because they are going up in value
A breakdown of Russia's FX reserves. No need to panic...at least not yet, says Morgan Stanley:
http://investmentwatchblog.com/a-breakdown-of-russias-fx-reserves-no-need-to-panic-at-least-not-yet-says-morgan-stanley/
A great shift in power to the East continues. The struggle to unseat America as the worlds most dominate nation continues. For many proud Americans who see the United States as having a right to be in control it is both threatening and frustrating to see that control slip away.
It is threatening to think the country might quickly fall to the position of a second rate power mired in debt with many of the options we have come to see as our right suddenly ripped away. It is frustrating that in many ways America appears to have become its own worse enemy guilty of political inaction and squandering its power through a series of bad choices and missteps. More in the article below about the continuing massive shift in power to Asia and how America must immediately face its problems to set its house in order.
http://brucewilds.blogspot.com/2014/06/americas-struggle-to-stay-on-top.html
The Chinese Empire lasted more than two thosand years before it fell apart in late 1890s, and they still talk about the lessons of that collapse in China. And the American Empire lasted for how long since 1945?